Commercial and Residential Real Estate in Strong Demand

April 10, 2017

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“We have a lot of exciting developments happening in Durham Region,” said Sue Duchesnay, DRAR Board of Director and Commercial REALTOR®. “Incentive to invest is continuing to grow as people want to work where they live.”

Available office, industrial, distribution/logistics and retail space, as well as build-to-suit opportunities are supported by stable and competitively priced utilities. The region also benefits from some of the lowest commercial and industrial land costs and lease rates in the GTA; typically, about half the cost of the GTA average. Durham Region boasts the lowest real estate rates in the GTA. There were four notable sales in Q4, which totaled more than $15 million; 1602 Tricont was the largest in terms of both area (227,000 square feet) and dollar value ($13 million). Three of the four GTA East submarkets— Ajax, Pickering, and Whitby—sawtheir average asking net rental rates increase compared to the previous quarter. The GTA East experienced more than 100,000 square feet of positive absorption in Q4, which was the largest amount this market experienced for all of 2016. The key contributor to this was in Whitby, where 200 Montecorte Street was leased for a multi-year term.

In the second half of 2016, 29 redevelopment land transactions took place in Durham Region. The total dollar value of transactions this quarter was approximately $131.9 million. Of the 29 transactions, 18 land parcels were improved land. Cedar City Development’s purchase on Taunton Road West for $28.5 million was the largest transaction. All three of the top sales in this region were for lowdensity sites purchased by developers.

RESIDENTIAL

Record highs continue in Durham housing market with 42.5% increase.

Durham Region Association of REALTORS® (DRAR) President Roger Bouma reported 1,349 residential transactions in March 2017, a 16% increase from the same time last year. March also saw the number of new listings in Durham increase to 1,800, significantly up from 976 new listings the previous month, and higher than the 1,474 new listings in March 2016. “While strong demand continues to drive our market in 2017, it is interesting to finally see inventories increase” stated Bouma, adding “this increased selection might entice more buyers to look at Durham.”

The average selling price in Durham reached $697,896 last month. In comparison, the average selling price was $489,755 during the same period last year; a 42.5% increase. “Homebuyers are recognizing how great the quality of life is in Durham Region,” said Bouma. “Even with this astounding increase in value, Durham continues to offer one of the most affordable housing markets in the regions neighbouring Toronto.”

Homes have continued to sell quickly in an average of 7 days compared to 11 days last year. “There is a high demand to live on the east-end of the GTA,” said Bouma. “Ongoing expansion of transportation infrastructure make our region both accessible and desirable.”

“In Durham Region you can go from Lake Ontario, through vibrant downtowns, to farmland in 10 or 15 minutes,” explains Bouma. “You can’t get that anywhere else in the GTA.”

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